Saudi Home Deals Halve to 29,493 as Riyadh Office Rents Rise to SAR 2,770

2 articles · Updated · ZAWYA · Jun 14

29,493 residential deals were recorded in Saudi Arabia in Q1 2026, down 50% year on year, while transaction values fell 57% to SAR 22 billion, with Riyadh seeing an even steeper 82% drop.
Affordability strains, softer mortgage demand and buyer caution tied to regional conflict drove the slowdown; new mortgage contracts fell 25% in the first four months of 2026 and lending value dropped 34%.
Prices still held up across major cities, with Riyadh apartment values up 6.3% and villas up 4.9%, suggesting earlier months' resilience has so far outweighed weaker deal activity.
Commercial property remained firmer: Riyadh Grade A office rents rose 2.5% to SAR 2,770 per square meter and occupancy stayed at 97%, supported by more than 700 regional headquarters commitments and a 20% rise in foreign investment licences.
Longer term, Saudi authorities are leaning on housing and ownership reforms to support demand, even as conflict-linked construction costs—up more than 20% this year—risk delaying new office supply.